WALL STREET PANIC

Auckland Star, Volume XXXVIII, Issue 256, 26 October 1907, Page 5

WALL STREET PANIC

£40,000,000 WITHDRAWN.

MORE BANK SUSPENSIONS.

BIG STEEL FAUTOiS.

(By Cable.—Press Association—Copyright.)

NEW YORK, October 25.

No less than forty millions sterling has been withdrawn from New York banks during the past fortnight. The tight money market in New York yesterday caused paralysis of the foreign exchange market. The situation as regards the Trust Company of America has been met. It is expected that tiie Knickerbocker Trust will shortly resume. The Hamilton Bank of New York, with i 1,400,000 deposits, and the Twelfth Ward Bank suspended payment owing to lack of ready cash, but the State Bank examined both, and found them solvent The same result attended the inquiry into the affairs of the Empire City Savings Bank, which availed itself of the thirty days' clause to save a run.

The Nevada State Bank at Carson has also suspended payment. The Southern Steel Company, at Birmingham, Alabama, with five million sterling capital, has failed.

Wall Street was cheerful at the outset, but the forced liquidation of some stocks led to a further slump. Later there was a slight rally in the general position, and the evening closed with a distinctly more hopeful feeling.